Miami Home Sales Jump 72 Percent in the 1st Quarter 2009
Miami Home Sales Jump 72 Percent in the 1st Quarter
Miami sales of single-family homes soared 72 percent in the first quarter of 2009 from a year earlier, according to Realtors statistics. For major metro markets, Miami was the hottest in the state with Ft. Lauderdale next at 46 percent. Statewide single-family sales only increased by 25 percent.
The sales of existing condominiums increased by 51 percent in Miami compared to the first quarter of 2008, while statewide there was only a 19 percent increase in the sales of existing condominiums. Only Orlando hit a higher percentage increase in sales, but at the cost of a much bigger loss in their median sale price.
“Miami has been one of the strongest comeback markets in the State of Florida for the last eight months. The number of Miami sales has been increasing consistently since August 2008, statistics and timeframe that definitely point to a market recovery,” said Rick Burch, RAMB Chairman of the Board.
“Since the passing of the 2009 First-Time Home Buyer Tax Credit, sales have spiked substantially,” said RAMB Residential President Martha Pomares. “Interest rates have dropped down to their lowest levels in over a decade and have brought more buyers into the market. The magical combination of rates, tax credit, other incentives and rock bottom prices has created a compelling and unique buying opportunity for nearly everyone.”
In addition to first time buyers, international buyers continue to play a significant role in recent home sales. U.S. buyers particularly from the Northeast are actively pursuing the South Florida real estate market.
“Home buyers are taking advantage of favorable affordability conditions not seen in years. European buyers, who benefit from discounted pricing and the strength of the Euro and the British pound, continue to invest in South Florida real estate,” said Rick Burch, 2009 Chairman of the Realtor Association of Greater Miami and the Beaches. “Brazilian and Venezuelan buyers are among the strongest from the Americas, along with others who are taking advantage of a great buyers market in Miami.”
Demand for properties is also increasing significantly. Pending home sales in Miami-Dade County increased approximately five percent in April 2009 from March, which was one of the strongest months in the last couple of years.
“We are beginning once again to see bidding wars similar to the ones we saw during the boom,” said Burch. “Consumers who were on the fence are now seizing the opportunities.”
While at a slower pace, median sales prices continue to decrease due to an increased number of foreclosures and short sales. The median sales price for single-family homes reported in Miami-Dade in the first quarter of 2009 was $203,700, a 38 percent drop from the first quarter of 2008. The median sales price for condominiums was $149,000, a 47 percent decrease from the previous year. Statewide, sales prices dropped 38 percent to $141,000 for single-family and 38 percent to $110,100 for condominiums.
“It is important to remember that a $203,700 median price for single family and $149,000 for condominiums means that an amazing one half of all homes and condos sold were under these amounts,” said Burch. “This is the first time in many years that the market has been so strong and so affordable for people in all price ranges in Miami and South Florida."
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